Digital Ally CEO Fuels Takeover Speculation
Digital Ally (NASDAQ: DGLY) extended its gains Tuesday, opening up 24 percent fueled in part by takeover talk stirred earlier by its chief executive.
Digital Ally Chief Executive Stanton Ross told Benzinga Monday that the company had been receiving buyout offers "all the time." The exec said strength in shares is not only due to the Ferguson crisis; cities and states across the nation have started talking about the company and the so-called "cop cam."
The company, with a market capitalization of just $43 million and 2013 sales of $17.8 million, had its shares gain more than 240 percent in the past five trading days on speculation that it will benefit from a growing interest from law enforcement agencies for body mounted police cameras.
The interest is supposedly related to civil unrest in Ferguson, Missouri.
Taser International (NASDAQ: TASR), with a market cap of $837 million and sales of $137.8 million last year, also makes police body cams in addition to its relatively better-known stun guns. Taser has recently seen its shares rise by a much more modest 15 percent.
Despite recent market drama, neither company's financial performance has been stellar recently, with both exhibiting choppy sales and income in quarterly reports over the past year.
Digital traded recently at $15.55, up 24.4 percent; Taser was trading at $15.82, down 0.82 percent.
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